Petrol/Diesel prices...

Stonedofmoo

Stonedofmoo

Stonedofmoo

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Joined
24 Oct 2002
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6,242
Location
Portsmouth
Are oil prices still really high at the moment? I notice fuel prices have gone up again as I drove past my petrol station and they are now 20p a litre more than they were last year.

Is this garages cashing in or is crude oil still very expensive and this is just a tough period. I couldn't find any recent stories on the bbc news site to suggest anything either way.
 
There's ALWAYS some cashing in to be had irrespective of crude price. :p

Makes me laugh to see forecourt prices jump up the instant the cost of crude oil increases. It takes less than 24 hours and nothing is said about fuel reserves which were bought at the lower rate. Suddenly the litre price of everything on UK soil increases. I bet that nets a tasty bonus every time that happens.

Then when crude prices drop strangely it takes two weeks for forecourt prices to drop.

How very peculiar.
 
I also think that the gap between petrol and diesel is widening, at our local morrisions it's 10p a litre difference where's before it was about 3 - 4p
 
wonder_lander said:
I also think that the gap between petrol and diesel is widening, at our local morrisions it's 10p a litre difference where's before it was about 3 - 4p
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Most likely because the petrol companys have realised that world + dog thinks that diesel is the answer to all lifes' problems, so they're jacking the price up.
 
Also... I wonder what the ratio of Diesel to Petrol cars are in the UK.

Im guessing that Diesel is certainly level pegging with Petrol, if anything, even more than Petrol.
 
A quick peek into the carpark outside says otherwise. There are still more petrols I'd say, but the gap will be closing.
 
Psycrow said:
A quick peek into the carpark outside says otherwise. There are still more petrols I'd say, but the gap will be closing.
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Fair comment.

I suppose working for a company where we have a lot of marketing/salesmen on the road who all use Diesel, changes your perspective :)
 
Oil has, for the last 3 weeks, been lower then it has been for much of this year. However in the last few days it's begun to climb back towards $110 again.
 
merlin said:
There's ALWAYS some cashing in to be had irrespective of crude price. :p

Makes me laugh to see forecourt prices jump up the instant the cost of crude oil increases. It takes less than 24 hours and nothing is said about fuel reserves which were bought at the lower rate. Suddenly the litre price of everything on UK soil increases. I bet that nets a tasty bonus every time that happens.

Then when crude prices drop strangely it takes two weeks for forecourt prices to drop.

How very peculiar.
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Once it broke £1 a litre the day after $100 a barrell (?!?!) the world became their oyster :rolleyes: I blame the media :p
 
While I agree the price is very artificially inflated, I think it has partly been done in an attempt to try to limit the increase in global demand. As supply slips further behind demand, it can only get worse.

That aside, the forecourt prices definatly just cash in on the whole thing. The quick responce to price increase and the huge lag to price decreases just takes the pee pee.
 
How exactly is supply slipping behind demand?

I dont see any forecourts short of fuel, planes being grounded, or ships stuck in port.
 
Sadly petrol prices are only going to go one way and that is up and up, there is a finite world supply and big business and Governments have seen a way to cash in. I've heard rummors recently that diesel could be heading for £2 a lite in the next 12 months due to a massive increase in world demand could be a load of poo but would certainly wipe the smile of the 55MPG brigades face!
 
The reason for current high oil prices is largely becuase of speculation in the market. Becuase of the state of the US economy and the falling value of the dollar, investors have been using commodities as a hedge against this and investing in these instead. There have been similar price increases in Gold and Grain as well. So, the oil market at current is not really very linked to true supply and demand at all. Even allowing for current situations it should be around $70.

But of course oil is a very small part of the price of our fuel and as a result price increases do not affect us much - you'd need to double or even triple oil to see a noticeable difference in fuel prices (Hence the 20p rise in the last 5 years during which time oil has increased 4 fold). The main reason for our high fuel prices remains, regardless of any spin some people will try and put on it, becuase of the very high percentage of the price that is taken in tax. Becuase remember - although duty is fixed, VAT isnt - every time it goes up, so does the taxation take.
 
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Bug One said:
How exactly is supply slipping behind demand?

I dont see any forecourts short of fuel, planes being grounded, or ships stuck in port.
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Demand is growing hugely due to the expansion of china, india and other developing nations. World supply chains are becoming stretched. There is a shrowd of mystery over the whole thing since known reserves and known pumping capacity of many of the big players (middle east) in the oil game, are not properly known.
I read a good book about it by a guy called simens (I think, will see if I can find a linky). Very good read that highlights the problems facing the worlds oil supply over the next decade or so.

EDIT - guys name was Matthew Simmons. Loads of articles on the web about it.
 
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